By Giovanni Legorano and Giada Zampano
Prosecutors from a small town in the south of Italy have
launched an investigation into several Italian banks in connection
with derivatives transactions, a person close to the investigation
told Dow Jones Newswires Friday.
The person said prosecutors from Trani are investigating the
sale of derivatives to business and private clients by some "main
Italian banks," adding that they are investigating allegations of
swindling--to cheat or defraud of money or property--and
usury--lending money at excessive or abusive interest rates. These
two crimes would have damaged the counterparties of the derivatives
contracts in question.
Following news of the investigation, which was reported in the
Italian media, the shares of a number of Italian banks lost ground
in Friday trading in Milan.
Italian daily Corriere della Sera reports on its website that
Trani prosecutors are investigating employees of five Italian
banks--UniCredit SpA (UCG,MI), Intesa Sanpaolo SpA (ISP.MI), Banca
Monte dei Paschi di Siena SpA (BMPS.MI), Banca Nazionale del Lavoro
and Credito Emiliano SpA (CE.MI)--in connection with the sale of
derivatives to entrepreneurs from the city of Bari.
At 1514 GMT, UniCredit shares were down 2.8%, Intesa was down
2.5%, Monte dei Paschi was down 6.3% and Credito Emiliano was down
1.7%.
Monte dei Paschi took several hits in most of the last trading
sessions after it emerged last week that complex structured
transactions might cause it millions in losses. The Trani
investigation doesn't involve one of those transactions.
A spokeswoman for UniCredit said at the moment, the bank isn't
aware of an investigations by Trani prosecutors. Monte dei Paschi
declined to comment.
Credito Emiliano, Intesa and Banca Nazionale del Lavoro didn't
immediately return calls seeking comment.
(Manuela Mesco and Oscar Bodini contributed to this report)
Write to Giovanni Legorano at giovanni.legorano@dowjones.com
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